Throughput time is the name given to the time required to produce a product. The production process is a multi-dimensional process. In this process, raw materials turn into intermediate goods and eventually to final goods. There are also different processes that accompany this transformation process. The production period is decided by determining and calculating all these processes. Knowing of this period is of great importance for businesses. Because the production time must be known in order to maximize efficiency, which is one of the main objectives of today’s businesses, and to make business planning in the most effective way. The calculation of throughput time is quite easy. However, in order to make an accurate calculation, all factors affecting the process must be included in the calculation.
Definition of Throughput Time
The simplest definition of throughput time is the time until all the materials and workforce required for production come together and reach the final product. Throughput time is of great importance for businesses. Because manufacturing a product in a short time is a demanded situation for the efficiency of the business. It is not possible to set a clear time for all manufacturers, as each business has a different production scheme or different paths in production. However, each business should determine the throughput time in itself and review the processes if there is a loss of time. If it is determined that 1 hour time including all processes for manufacturing a product has been made but it has been determined that the throughput time has been done within a period of time than its production, then it is possible to say that the production efficiency of the enterprise is low.
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The manufacture of the products in a wider time period causes a loss of time for the enterprise and causes production under the production capacity. Therefore, it is necessary to determine the production time well and to review the factors that cause the time spent for production to be exceeded during the business planning phase.
Analyzing Throughput Rates
Analysis of throughput rates has an important role in determining whether production takes place efficiently and at the desired level within an enterprise. Analysis of production rates means the proportion of the number of products obtained with the time the product is manufactured. By analyzing these rates, businesses can determine how close they are to production goals or to what extent they deviate from their goal.
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Formula of Throughput Time and Calculation
The formula used to calculate the throughput time is extremely easy. There are four different processes when calculating the throughput time. The sum of the time spent on these four processes allows the calculation of the throughput time. It is possible to list the determining processes of the production period as follows:
- Transaction Process: Throughput time, which is one of the main processes in calculating the production time, refers to the time it takes for the raw material to reach the end of the band as it enters the production band. This period varies according to the production strategy of the enterprise and the difficulty of the product manufactured.
- Inspection Process: After a product is manufactured, it is not offered directly for use. It is inspected in order to understand that it is fully ready for use and to determine whether any defects have occurred during the production process. At the inspection process, the product is overhauled by the experts in the enterprise.
- Action Process: It refers to the time that the product in question loses in the transitions between the bands. In cases where the production process is carried out on more than one band and the product is transferred to another band after the completion of each stage, the transitions between the bands, the waiting times between them, the throughput time is included in the calculation.
- Queue Time: The last point that must be known to calculate the production time is the queue time. After the production and inspection stages of the product have passed, it means the waiting period in the process of leaving the production area, loading, and transporting the vehicles.
The total time value of these four processes allows determining the throughput time of a product. For example, let’s assume that the time between a product entering the tape as raw material and leaving the end of the tape as the final product is 2 hours. Let us determine the time taken to check the product coming out of the tape and determine the defects, if any, like 30 minutes. Let’s accept the transfer of the product between the bands and the expected time for the transfer for 30 minutes. Finally, let’s specify the time it waits in the queue for the product to be prepared for shipment as 2 hours. These 4-time values must be added to determine the total throughput time of this product. It is concluded that there are for 6 hours.